As the modern business world continues to transform with companies using different strategies to survive and triumph in the markets, several business operation factors ensure their continual existence. Companies have different financial capacities and often employ different business strategies to maintain their survival in competitive markets. Additionally, how companies relate to their business stakeholders, other corporate organization, and their employees differs from one business organization to another.
Three major business components have been the foremost aspects in many modern businesses include the financial capacity of a company, business stakeholders inclusive of employees, and the market that comprises of the consumer group.
Finance is important for business investment, expansion, and daily fiscal support, while stakeholders from the necessary human capital required for effective decision-making. Customers are the greatest source of market for an active business to succeed. In light of the above assumptions, this research paper describes Kmart in terms of finances, business affiliates, corporate stance, marketing initiatives, and personal assessment.
Overview of Kmart
Kmart is a renowned merchandising company that offers retail business services (Kmart par. 3). The company is a subsidiary business of Sears Holdings Corporation that began as a retail business in Detroit courtesy of Sebastian Spering Kresge, as its core founder about two centuries ago (Kmart par. 1). The small store that Kresge began in 1899 has evolved into a multimillion-retail business organization that owns more than 1,500 stores across major cities in the United States and Europe.
The company expanded gradually since its inception, and by 1912, it had acquired about 85 stores and increased its annual sales to about $10 million. The company has undergone several corporate challenges, including the impact of the global financial crunches that resulted in plummeted performance in many businesses within America (Kmart par. 4).
From its initial introduction in early 1899, Kmart has thrived in the competitive market through its business strategy that frequently focuses on product quality and low product pricing. Low pricing has made it maintain a strong corporate relationship with consumers.
Finances of Kmart
Finance is one of the foremost success factors for any modern business as money determines the fiscal ability of an organization to compensate workers, pay corporate operation changes, and maintain its market operations (Kmart par. 2). Financial capacity determines the ability of an operating company to engage in a lucrative investment, maintain its workforce, and manage its regular business operations (Kmart par. 5).
Kmart has been very pleasant in maintaining its financial base since its inception as a retail business organization. Under the umbrella of Sears Holdings Corporation, Kmart has ensured strong stability of its financial capacity over the years.
Although the global economic crisis affects its businesses internationally, Kmart has maintained its finances through its low-cost business strategy that ensures steady market performance (Kmart par. 3). From sales worth $10 million in 1912, the financial capacity of Kmart has grown lucratively over the years, and Kmart has managed to sustain its product sales and profitability.
Business Affiliates of Kmart
A close business associate of Kmart Corporations is the Sears Holdings Corporation, which is the core business that supports the operations of Kmart Holdings. Sear Holdings supports Kmart in its major business operations and marketing activities that include mass merchandising activities, e-commerce, and formulation of business expansion strategies (Kmart par.7).
Sear and Kmart collaborate in the retailer merchandising business and related services as they operate under the same business founder, which is Sear Holdings Corporations (Kmart par. 2). Sear Holdings and Kmart holdings deal with household commodities, clothing or apparel, automotive products, and some services through the Sears-branded stores.
The two corporate affiliates regularly assist each other in monitoring the merchandising operations and collaborate in ensuring successful e-commerce in the ShopYourWay platform (Kmart par. 5). Kmart and Sears collaborate in ensuring progress in-store management, sustainable corporate governance, enhanced supplier relations, and constant product supply across major stores in the United States and Canada.
Kmart has other important business affiliates that imperatively assist in major operations of the company. Among others, Kenmore Company, Craftsman Company, Diehard Company, and the Land’s End Corporation are some of the most important business associates of Kmart (Kmart par. 6). Kenmore is the leading supplier of home appliances and has several home merchandise brands that consumers consider effective, reliable, and stylish.
Kenmore supplies Kmart and Sears with stainless steel refrigerators, dishwashers, antibacterial products, washing machines, and microwave ovens that use radio frequency (Kmart par. 2). Craftsman Company is a motorsport company that supplies Kmart and Sears with automobile products that frequently play an important role in the Kmart stores.
Diehard is another affiliate company that supplies Kmart and Sears with automotive batteries that have always recorded a high consumer reputation in the United States. Land’s End Corporation is another important business associate of Kmart and Sears that frequently supplies Kmart with traditionally styled garments, home appliances, and other family products.
Corporate Relevance of Kmart
Kmart Corporations has been a merchandiser of sustainable consumer products that have influenced the social and economic lives of people within their operational zones (Kmart par. 1). Being a reliable mass merchandising company from 1899, Kmart company has maintained a good reputation with its consumers and the general market simply through its cost-effective products that most consumers constantly prefer.
According to Kmart, the demand for automobile products, clothing, home appliances, and leisure products is increasing across the world, and thus a sustainable distribution of such items makes life easier for consumers (par. 4). Working closely with business associates, whose market reputation is still relatively high in producing home merchandise, automobile products, and apparels that are requisite for the demanding consumers, their constant activities in supplying such products deem essential.
Consumers can barely manage to reach their yearned products of middle-size companies such as those automobile products and services that Craftsman Motorsport and Diehard Companies produce. Consumers may also be incapable of accessing quality home appliances and apparels of middle-size companies such as Lands’ End and Kenmore.
From their regional operations where such companies operate, the four-affiliate companies working with Kmart have recorded remarkable consumer reputation about the quality of services and goods they offer (Kmart par. 8). To ensure that consumers have access to their desired products or services, providing merchandise services is an appropriate means of ensuring the distribution of products to consumers.
Apart from ensuring a steady supply of consumer goods to the demanding population, Kmart and Sears offer exclusive brands to its consumers and maintain product quality assurance (Kmart par. 3). Kmart ensures that consumers have access to high-quality goods at affordable prices. Kmart Company makes essential brands available through its social media platform that enhances merchandising.
Kmart has emerged as one of the most powerful employers across the United States, Canada, and other European nations, and thus provides numerous employment opportunities for qualified personnel. Kmart has approximately 1221 retail stores that provide sustainable employment to thousands of professionals (Kmart par. 2). Corporate social responsibility (CSR) is one of the aspects that make Kmart an exemplary business organization.
Kmart actively supports programs that ensure environmental stability, community development, and often supports government operations to enhance economic growth (Kmart par. 1). The company has a program for recognizing and supporting its alumni and retirees to continue living healthy lives at an old age. To its employees, the company ensures that employee empowerment and motivation are key aspects that maintain a talented workforce.
Kmart has an award and recognition program, which reward business associates, workforce, and consumers (Kmart par. 4). Kmart cooperates with other businesspersons in the field of real estate business to provide investment opportunities for potential investors.
Marketing Initiatives
Kmart has been utilizing several effective product and service marketing strategies that have doubtlessly brought the company to its recent success (Kmart par. 5). The company operates with a market strategy known as penetration that is responsible for its substantial growth in market share and international recognition. Kmart has been marketing its products and delivering its services through a low pricing strategy that has enabled the company to maintain a steady sales growth and market share (Kmart par. 3).
Since its inception and development in 1899 to1912, Kmart has effectively managed to maintain the market penetration strategy with consumers able to enjoy the high-quality goods at considerably low prices of products and services (Kmart par. 4). Based on the assumption that consumer goods such as home appliances, automobile merchandise, and clothing are normally on high demand, Kmart has utilized the high demand opportunity to manipulate the market through the pricing strategy.
Personal Opinions
Kmart is a lucrative business in the United States and around the world that deals with most yearned products that are essential for daily use. Penetrating the global market to emerge as an international business organization is an uphill task for many organizations, given the stiff global market competition and constrained resources.
Although multinational companies can reach consumers internationally through their subsidiary business organizations, they may be incapable of providing appealing goods and services throughout their business operations. Middle and small enterprises have limited access to potential markets due to constrained financial capabilities that subsequently limit their business expansion to international levels.
Mass merchandising companies such as Kmart are important to consumers since they enhance access to varied products and allow customers to choose from an assortment of products. Retail businesses and mass merchandising company act as a bridge between needy consumers and middle-class companies that have little marketing abilities.
Conclusion
Although many companies venture into global markets, very few of them can manage to hit the global markets due to financial instabilities. Business associates, financial capabilities, business operation strategies, and marketing techniques are key components of doing a serving business to triumph.
Consumers may be unable to access products or services of a regional company unless they receive effective support of merchandisers in distributing and marketing the products and services of a company. Kmart is an effective American merchandising company, which has utilized market penetration, employee motivation, and CRS strategies in ensuring the survival of its business operations for several decades.
Works Cited
Kmart. Sears Holdings Corporation: About Kmart. 2014. Web.